Snapshot <ul><li>Recap </li></ul>Standing Orders Act Contract of Service Contract for Service Distinction between the two ...
Snapshot Contract Special Contracts Vicarious Liability Labour Law Standing Orders Act Contract of Service Contract for Se...
Standing Orders Act Contract for Service Distinction between the two Contract Labour Act Conclusion Recap Employment Terms...
<ul><li>Service under government in its sovereign functions i.e., legislative, executive, and judicial </li></ul><ul><li>G...
<ul><li>Firstly, employee should accept the letter of appointment or Offer letter issued by employer </li></ul><ul><li>Off...
Sources of  Terms and Conditions of Employment Termination of the Employment Contract Terms & Conditions of Employment Emp...
Sources of  Terms and Conditions of Employment <ul><li>Payment of Wages Act 1936 </li></ul><ul><li>Shops & Establishments ...
Sources of  Terms and Conditions of Employment Legal Framework Priority :  1 <ul><li>Legal Framework is the most important...
Sources of  Terms and Conditions of Employment Awards of Courts & Tribunals <ul><li>Awards are final and binding on all th...
Sources of  Terms and Conditions of Employment Settlements signed under the Industrial Disputes Act 1947 <ul><li>An Act to...
Sources of  Terms and Conditions of Employment Industrial Employment Standing Orders Act 1946 <ul><li>Objective of the act...
Sources of  Terms and Conditions of Employment Express Terms and Conditions <ul><li>Issued by the employer and accepted by...
Sources of  Terms and Conditions of Employment Customs, Usages, and Practices <ul><li>Become part of employment contract u...
Sources of  Terms and Conditions of Employment Implied Terms & Conditions <ul><li>Some conditions need not be expressed ex...
Sources of  Terms and Conditions of Employment Rules, Regulations, Policies, Orders, and Instructions <ul><li>issued/frame...
by the Employer by the Employee Superannuation (Retirement) By way of punishment Death of an Employee Retrenchment and Clo...
<ul><li>The contractor does the work in his own promises either by himself personally or by employing other employees </li...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Emplo...
<ul><ul><li>The act requires employers in industrial establishments to formally define the conditions of employment under ...
<ul><ul><li>to every ‘ industrial establishment ’ wherein  </li></ul></ul><ul><ul><li>greater than 100 workers </li></ul><...
<ul><ul><li>The Government shall appoint an officer to be called as the Certifying Officer </li></ul></ul><ul><ul><li>The ...
<ul><ul><li>Standing Orders shall come into operation </li></ul></ul><ul><ul><li>In case no appeal is preferred </li></ul>...
<ul><ul><li>The Text of the standing orders shall be prominently posted by the employer in English and in the language und...
<ul><li>An employer or worker of a trade union or other representative body of the workmen may apply to the Certifying Off...
<ul><li>Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers </li></ul><ul><li>Manner ...
Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
<ul><li>To regulate the employment of contract labor </li></ul><ul><li>To provide for its abolition </li></ul>Regulation o...
<ul><li>Contract labor </li></ul><ul><ul><li>When a workman is hired for the purpose of work </li></ul></ul><ul><ul><li>Co...
<ul><li>Workman </li></ul><ul><ul><li>Any person employed in or in connection with the work of any establishment to do any...
<ul><li>The act applies to:- </li></ul><ul><ul><li>Every establishment in which twenty or more workmen, are employed or we...
<ul><li>The Act empowers the appropriate government to order the prohibition of employment of contract labor in certain jo...
Registration and License Health and welfare provisions Responsibility for payment of wages Penalties Regulation of Contrac...
<ul><li>The contractor should obtain a valid licence from a Licencing Officer appointed by the Government. </li></ul><ul><...
<ul><li>If Government prescribes the contractor should make provision for basic facilities such as canteen, rest room, dri...
<ul><li>A contractor shall be responsible for payment of wages to each worker employed by him as contract labour within th...
<ul><li>Persons who contravene any provision of this Act or of any rules made there under shall be punishable with impriso...
Employment Contracts Contract of Service Contract for Service Differences Standing Orders Act Contract Labour Act
 
 
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2010 11 pgp1-lab_group_presentation_section b_group 15_30th_november_2010_(unanimated_version)

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LEGAL ASPECTS OF BUSINESS

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  • Contract – an agreement enforceable by law Special Contract Labour Law – Body of laws which address the legal rights of, and restrictions on, working people and their organizations
  • 2010 11 pgp1-lab_group_presentation_section b_group 15_30th_november_2010_(unanimated_version)

    1. 2. Snapshot <ul><li>Recap </li></ul>Standing Orders Act Contract of Service Contract for Service Distinction between the two Contract Labour Act Conclusion
    2. 3. Snapshot Contract Special Contracts Vicarious Liability Labour Law Standing Orders Act Contract of Service Contract for Service Distinction between the two Contract Labour Act Conclusion
    3. 4. Standing Orders Act Contract for Service Distinction between the two Contract Labour Act Conclusion Recap Employment Terms & Conditions of Employment Termination of the Employment Contract
    4. 5. <ul><li>Service under government in its sovereign functions i.e., legislative, executive, and judicial </li></ul><ul><li>Governed by Constitutional Provisions and hence fall outside the purview of labour law </li></ul><ul><li>Exception made to this general rule to bring employees of ‘departmental undertakings’ ( Government employees ) within the purview of labour law </li></ul><ul><li>Contract of Employment ≡ Contract of Service ≡ Employment Contract ≡ Employment Relationship </li></ul>the employee the contract of employment the employer Public Employment Private Employment Ingredients of Employment Termination of the Employment Contract Terms & Conditions of Employment Employment
    5. 6. <ul><li>Firstly, employee should accept the letter of appointment or Offer letter issued by employer </li></ul><ul><li>Offer letter contains Terms and Conditions </li></ul>Termination of the Employment Contract Terms & Conditions of Employment Employment
    6. 7. Sources of Terms and Conditions of Employment Termination of the Employment Contract Terms & Conditions of Employment Employment
    7. 8. Sources of Terms and Conditions of Employment <ul><li>Payment of Wages Act 1936 </li></ul><ul><li>Shops & Establishments Acts of Various states </li></ul><ul><li>Maternity Benefit Act 1961 </li></ul><ul><li>Payment of Gratuity Act 1972 </li></ul><ul><li>Employees Provident Fund & Miscellaneous Provisions Act 1952 </li></ul><ul><li>Employees State Insurance Act 1948 </li></ul><ul><li>Workmen’s Compensation Act 1923 </li></ul>Legal Framework <ul><li>Factories Act 1948 </li></ul>Provisions: Working conditions, health, safety, welfare Priority : 1 Termination of the Employment Contract Terms & Conditions of Employment Employment
    8. 9. Sources of Terms and Conditions of Employment Legal Framework Priority : 1 <ul><li>Legal Framework is the most important source of Terms & Conditions </li></ul><ul><li>This overrides all other sources </li></ul><ul><li>In case of difficulty in interpretation, the benefit of doubt is passed on to the employees </li></ul>Termination of the Employment Contract Terms & Conditions of Employment Employment
    9. 10. Sources of Terms and Conditions of Employment Awards of Courts & Tribunals <ul><li>Awards are final and binding on all the concerned parties and cannot be questioned </li></ul><ul><li>Overrides all other sources except the legal framework </li></ul>Priority : 2 Termination of the Employment Contract Terms & Conditions of Employment Employment
    10. 11. Sources of Terms and Conditions of Employment Settlements signed under the Industrial Disputes Act 1947 <ul><li>An Act to make provision and settlement of Industrial Disputes </li></ul><ul><li>Divides employees into workman and non-workman </li></ul><ul><li>Subordinates in priority to the preceding two sources and overrides all the succeeding sources </li></ul>Priority : 3 Termination of the Employment Contract Terms & Conditions of Employment Employment
    11. 12. Sources of Terms and Conditions of Employment Industrial Employment Standing Orders Act 1946 <ul><li>Objective of the act is to maintain uniformity in terms and conditions of employment in respect of workmen belonging to the same category . The rules made in the regard to these conditions is called Standing Orders </li></ul>Priority : 4 Termination of the Employment Contract Terms & Conditions of Employment Employment
    12. 13. Sources of Terms and Conditions of Employment Express Terms and Conditions <ul><li>Issued by the employer and accepted by the employee </li></ul><ul><li>Could be seen in documents </li></ul><ul><ul><li>Letter of appointment </li></ul></ul><ul><ul><li>During the course of employment </li></ul></ul><ul><ul><ul><li>Letters of Annual Increment </li></ul></ul></ul><ul><ul><ul><li>Letters of Promotion </li></ul></ul></ul><ul><ul><ul><li>Letters of transfer etc., </li></ul></ul></ul>Priority : 5 Termination of the Employment Contract Terms & Conditions of Employment Employment
    13. 14. Sources of Terms and Conditions of Employment Customs, Usages, and Practices <ul><li>Become part of employment contract unless they are in conflict with any preceding sources </li></ul><ul><li>No need to be specifically expressed at the time of employment </li></ul><ul><li>Examples </li></ul><ul><ul><li>Employers providing two cups of tea every day to the employees </li></ul></ul><ul><ul><li>Distribution of sweet boxes on festivals </li></ul></ul><ul><ul><li>Giving festival advances on certain occasions </li></ul></ul>Priority : 6 Termination of the Employment Contract Terms & Conditions of Employment Employment
    14. 15. Sources of Terms and Conditions of Employment Implied Terms & Conditions <ul><li>Some conditions need not be expressed explicitly </li></ul><ul><li>For ex, employee has to perform his duties </li></ul><ul><ul><li>Diligently </li></ul></ul><ul><ul><li>Honestly </li></ul></ul><ul><ul><li>Personally </li></ul></ul><ul><ul><li>Faithfully </li></ul></ul>Priority : 7 Termination of the Employment Contract Terms & Conditions of Employment Employment
    15. 16. Sources of Terms and Conditions of Employment Rules, Regulations, Policies, Orders, and Instructions <ul><li>issued/framed by company </li></ul><ul><li>may relate to leave, medical benefits, LTC, discipline and workplace conduct etc., </li></ul><ul><li>become enforceable if they’re reasonable, lawful and not contradictory to above 7 sources of terms </li></ul><ul><li>exception will be given even if they’re contradicting above sources if they are liberal in favour of the employee </li></ul>Priority : 8 Termination of the Employment Contract Terms & Conditions of Employment Employment
    16. 17. by the Employer by the Employee Superannuation (Retirement) By way of punishment Death of an Employee Retrenchment and Closure Termination of the Employment Contract Terms & Conditions of Employment Employment
    17. 18. <ul><li>The contractor does the work in his own promises either by himself personally or by employing other employees </li></ul><ul><li>The contract does the work in the premises of the principal personally and singly </li></ul><ul><li>The contractor does the work in the premises of the principal by employing some other employees. This option has often been misused by the employers and to check these practices the Parliament had enacted the Contract Labour (Regulation and Abolition) Act 1970 </li></ul>
    18. 19. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade As per Justice Subba Rao’s observations There is a well understood distinction between a contractor and a workman and between contract for service and contract of service…A ‘contractor’ is a person who in the pursuit of an independent business, undertakes to do specific jobs of works for other persons, without submitting himself to their control in respect to the details of the work. Therefore, there is a clear-cut distinction between a contractor and a workman. The identifying mark of the latter is that he should be under the control and supervision of the employer in respect of the details of the work.
    19. 20. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade <ul><li>Exclusive Employment </li></ul><ul><ul><li>Employee works, exclusively, for one employer within the specified period of the day </li></ul></ul><ul><ul><li>She (he) can get into a full time employment with one employer and a part time employment with another for period of day fixed by each employer </li></ul></ul><ul><ul><li>A contractor can work for more than one client at a time </li></ul></ul>
    20. 21. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade Right of Control Employee (Contract of Service) Contractor(Contract for Service) <ul><li>Acts under direct supervision and control of the supervisor and bound to conform to all the reasonable and lawful orders given to him in the course of employment </li></ul><ul><li>Produces a specified result and may adopt his own means and methods. A mere right to issue instructions as to what work should be done no necessarily constitute a relationship of employer and employee </li></ul><ul><li>Power is vested with an employer to interfere with the work of an employee. It is the right or precisely existence of the right which distinguishes a contract of service and contract for service. </li></ul><ul><li>Such power may or may not exist in the case of a contractor engaged by the same employer </li></ul><ul><li>High degree of control is exercised by the employer </li></ul><ul><li>In the absence of degree of control required for employer-employee relationship, the relationship is principal-contractor </li></ul>
    21. 22. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade <ul><li>Part of the Employer’s Organization </li></ul><ul><ul><li>Employee, the part and parcel of the employer’s organization </li></ul></ul><ul><ul><li>Contractor, always outsider to the organization (even when performing job within the premises of the principal) and a businessman in his own right, often having own organization and employees </li></ul></ul>
    22. 23. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade <ul><li>Respondeat Superior </li></ul><ul><ul><li>Doctrine of Respondeat Superior is applicable for employees but not for contractors due to two important characteristics of employment contract </li></ul></ul><ul><ul><ul><li>Employer’s right to control the manner of the work </li></ul></ul></ul><ul><ul><ul><li>Employee’s requirement to be part and parcel of the employer’s organization </li></ul></ul></ul><ul><ul><li>The doctrine is based on vicarious liability and considers an employer to be liable to the third parties for the consequences of the acts which are done by an employee within the scope of employment </li></ul></ul><ul><ul><li>The principal does not have any such vicarious liability for the acts done by the contractor </li></ul></ul>
    23. 24. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade <ul><li>Personal Contract </li></ul><ul><ul><li>Contract of Service is a contract of personal service </li></ul></ul><ul><ul><li>Until expressly permitted by the employer, the employee has to personally perform the work entrusted to him by the employer </li></ul></ul><ul><ul><li>Unless expressly prohibited by the principal, a contractor can get the work done through other workers or sub-contractors </li></ul></ul><ul><ul><li>Contract of Service automatically gets terminated with the death of the employee or upon expiry of a specified period of service, whichever is earlier </li></ul></ul><ul><ul><li>Consequent to the death of an employee, neither the employer can claim any damages from the legal heirs of the employee nor can the heirs of the deceased employee can claim employment or continuation of the same work </li></ul></ul><ul><ul><li>If contractor dies, the principal has certain rights against the deceased contractor’s estate </li></ul></ul>
    24. 25. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade <ul><li>Remuneration </li></ul><ul><ul><li>Normally, the basic remuneration of an employee is time-based-daily, weekly, monthly, or yearly. There may be additional performance-based incentives </li></ul></ul><ul><ul><li>Remuneration of a contractor is task based. The principal remunerates the contractor on the basis of the quantum of the work done </li></ul></ul>
    25. 26. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade <ul><li>Disciplinary Action </li></ul><ul><ul><li>An employee is subjected to disciplinary action by the employer in case of violation of the rules and regulations applicable to the employer’s organization </li></ul></ul><ul><ul><li>A principal has no power or authority to initiate any disciplinary action against an contractor </li></ul></ul>
    26. 27. Tests to distinguish Contract of Service from Contract for Service Exclusive Employment Right of Control Part of the Employer’s Organization Respondeat Superior Personal Contract Remuneration Disciplinary Action Machinery & Tools of Trade <ul><li>Machinery & Tools of Trade </li></ul><ul><ul><li>Normally, an employer provides the machinery and the required tools of trade to an employee for carrying on work </li></ul></ul><ul><ul><li>Normally, a contractor uses his own machines and tools </li></ul></ul>
    27. 28. <ul><ul><li>The act requires employers in industrial establishments to formally define the conditions of employment under them by having certified standing orders. </li></ul></ul>Matters to be provided in the Standing Orders Duration & Modification of Standing Orders Posting of Standing Orders Certification of Standing Orders Date of Operation of Standing Orders Applicability
    28. 29. <ul><ul><li>to every ‘ industrial establishment ’ wherein </li></ul></ul><ul><ul><li>greater than 100 workers </li></ul></ul><ul><ul><ul><ul><ul><li>are currently employed (or) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>were employed on any day of the preceding 12 months. </li></ul></ul></ul></ul></ul><ul><ul><li>“ Industrial establishment” means </li></ul></ul><ul><ul><li>an industrial establishment as defined in the Payment of Wages Act, 1936 </li></ul></ul><ul><ul><li>a factory as defined in the Factories Act, 1948 </li></ul></ul><ul><ul><li>a railway as defined in the Indian Railway Act 1890 </li></ul></ul><ul><ul><li>the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen </li></ul></ul>Matters to be provided in the Standing Orders Duration & Modification of Standing Orders Posting of Standing Orders Certification of Standing Orders Date of Operation of Standing Orders Applicability
    29. 30. <ul><ul><li>The Government shall appoint an officer to be called as the Certifying Officer </li></ul></ul><ul><ul><li>The employer will submit the draft standing orders proposed by him for adoption in him/her industrial establishment to the Certifying Officer </li></ul></ul><ul><ul><li>The draft should contain all matters prescribed by the Act and be in conformity with the model standing orders set out in the Act </li></ul></ul><ul><ul><li>On receipt of the draft standing orders, the Certifying Officer shall forward a copy thereof to the trade union of workers or their representatives </li></ul></ul><ul><ul><li>After giving opportunity of being heard to employers and workmen’s representatives, the Certifying Officer shall certify the draft standing orders after making necessary modifications which he deems necessary </li></ul></ul><ul><ul><li>In case of any grievance, either of the two parties can prefer and appeal against the orders of the Certifying Officer to the appellate authority </li></ul></ul>Matters to be provided in the Standing Orders Duration & Modification of Standing Orders Posting of Standing Orders Certification of Standing Orders Date of Operation of Standing Orders Applicability
    30. 31. <ul><ul><li>Standing Orders shall come into operation </li></ul></ul><ul><ul><li>In case no appeal is preferred </li></ul></ul><ul><ul><ul><li>At the expiry of thirty days from the date on which authenticated copies were sent </li></ul></ul></ul><ul><ul><li>In case an appeal is preferred </li></ul></ul><ul><ul><ul><li>On the expiry of seven days from the date on which copies of the order of the appellate authority were sent </li></ul></ul></ul>Matters to be provided in the Standing Orders Duration & Modification of Standing Orders Posting of Standing Orders Date of Operation of Standing Orders Applicability Certification of Standing Orders
    31. 32. <ul><ul><li>The Text of the standing orders shall be prominently posted by the employer in English and in the language understood by the majority of the workers on special boards at or near the entrance and in all departments where the workers are employed. </li></ul></ul>Matters to be provided in the Standing Orders Duration & Modification of Standing Orders Posting of Standing Orders Date of Operation of Standing Orders Applicability Certification of Standing Orders
    32. 33. <ul><li>An employer or worker of a trade union or other representative body of the workmen may apply to the Certifying Officer to have the standing orders modified </li></ul><ul><li>However, certified standing orders cannot be modified </li></ul><ul><ul><li>except on agreement between the employer and the workmen (and) </li></ul></ul><ul><ul><li>until the expiry of six months from the date on which the standing orders or the last modifications thereof came into operation </li></ul></ul>Matters to be provided in the Standing Orders Duration & Modification of Standing Orders Posting of Standing Orders Date of Operation of Standing Orders Applicability Certification of Standing Orders
    33. 34. <ul><li>Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers </li></ul><ul><li>Manner of intimating periods and hours of work, holidays, pay-days and wage rates </li></ul><ul><li>Shift working </li></ul><ul><li>Attendance and late coming </li></ul><ul><li>Conditions of and procedures for applying leave and holiday </li></ul><ul><li>Requirement to enter premises by certain gates, an liability to search </li></ul><ul><li>Closing and reporting of sections of the industrial establishment, temporary stoppages of work and the rights and liabilities of the employer and workmen rising there from </li></ul><ul><li>Termination of employment, and the notice thereof to be given by employer and workmen </li></ul><ul><li>Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct </li></ul><ul><li>Means of redress for workmen against unfair treatment of wrongful exactions by the employer or his agents or servants </li></ul>Matters to be provided in the Standing Orders Duration & Modification of Standing Orders Posting of Standing Orders Date of Operation of Standing Orders Applicability Certification of Standing Orders
    34. 35. Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    35. 36. <ul><li>To regulate the employment of contract labor </li></ul><ul><li>To provide for its abolition </li></ul>Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    36. 37. <ul><li>Contract labor </li></ul><ul><ul><li>When a workman is hired for the purpose of work </li></ul></ul><ul><ul><li>Contractor not obliged to inform the Principal Employer </li></ul></ul><ul><li>Contractor </li></ul><ul><ul><li>One who, in addition to the supply of goods, undertakes to produce a result, through contract labor </li></ul></ul><ul><ul><li>Also, one who supplies labor to any establishment and includes a sub-contractor </li></ul></ul><ul><li>Principal Employer </li></ul><ul><ul><li>Owner or manager or any person responsible for supervision & control of the establishment </li></ul></ul><ul><li>Establishment </li></ul><ul><ul><li>Any office/department of the government or local authority, or any place where industry, trade, business, manufacture or occupation is carried on </li></ul></ul>(1/2) Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    37. 38. <ul><li>Workman </li></ul><ul><ul><li>Any person employed in or in connection with the work of any establishment to do any skilled, unskilled, semiskilled or unskilled, manual, supervisory, or clerical work for hire or reward </li></ul></ul><ul><ul><li>Terms of such employment can be either expressed or implied </li></ul></ul><ul><ul><li>Does not include any such persons:- </li></ul></ul><ul><ul><li>Who is employed in a managerial or administrative capacity </li></ul></ul><ul><ul><li>Who, being employed in a supervisory capacity, draws wages in excess of five hundred rupees per mensem </li></ul></ul><ul><ul><li>Who is an out-worker </li></ul></ul>(2/2) Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    38. 39. <ul><li>The act applies to:- </li></ul><ul><ul><li>Every establishment in which twenty or more workmen, are employed or were employed on any day of the preceding 12(twelve) months as contract labor </li></ul></ul><ul><ul><li>Every contractor who employs or who employed on any day of the preceding twelve months, twenty or more workmen </li></ul></ul>Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    39. 40. <ul><li>The Act empowers the appropriate government to order the prohibition of employment of contract labor in certain jobs/areas through the issue of notification after consultation with the Contract Labor Advisory Boards constituted under the Act </li></ul><ul><li>Contributing factors leading to the enforcement of prohibition of contract labor:- </li></ul><ul><ul><li>Whether the process, operation or other work is incidental to, or necessary for the industry, trade business, manufacture or occupation that is carried on in the establishment </li></ul></ul><ul><ul><li>Whether it is of perennial nature </li></ul></ul><ul><ul><li>Whether it is done ordinarily through regular workmen in that establishment or an establishment similar thereto </li></ul></ul><ul><ul><li>Whether it is sufficient to employ considerable number of whole-time workmen </li></ul></ul>Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    40. 41. Registration and License Health and welfare provisions Responsibility for payment of wages Penalties Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    41. 42. <ul><li>The contractor should obtain a valid licence from a Licencing Officer appointed by the Government. </li></ul><ul><li>The principal employer of every establishment intending to get any work done through contract labour should obtain a valid certificate of registration from a Registering Officer appointed by the Government. </li></ul>Health and welfare provisions Responsibility for payment of wages Penalties Registration and License Registration and License Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    42. 43. <ul><li>If Government prescribes the contractor should make provision for basic facilities such as canteen, rest room, drinking water, first aid etc. for his contract labour. </li></ul><ul><li>If any of those amenities are not provided by the contractor, they shall be provided by the principal employer. </li></ul><ul><li>All expenses incurred in doing so by the principal employer may be recovered by the principal employer from the contractor. </li></ul>Registration and License Health and welfare provisions Responsibility for payment of wages Penalties Health and welfare provisions Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    43. 44. <ul><li>A contractor shall be responsible for payment of wages to each worker employed by him as contract labour within the prescribed period. </li></ul><ul><li>The principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor. </li></ul><ul><li>The representative will be there to certify the amounts paid as wages. </li></ul><ul><li>In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due. </li></ul>Registration and License Responsibility for payment of wages Penalties Health and welfare provisions Responsibility for payment of wages Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    44. 45. <ul><li>Persons who contravene any provision of this Act or of any rules made there under shall be punishable with imprisonment or with fine or with both. </li></ul><ul><li>If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the commence. </li></ul><ul><li>Where an offence under this Act has been committed by a company and if it is proved that it has been committed with the consent or due to any negligence from the part of the director, manager, managing agent or such other officer of the company shall be shall be deemed to be guilty of that offence. </li></ul>Registration and License Penalties Health and welfare provisions Responsibility for payment of wages Penalties Regulation of Contract Labour Purpose of the Act Prohibition of Contract Labour Definitions Applicability
    45. 46. Employment Contracts Contract of Service Contract for Service Differences Standing Orders Act Contract Labour Act

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